module25__version 2013.pdf

7/28/2019 Module25__version 2013.pdf

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IFRS for SMEs (2009) + Q&As

IFRS Foundation: Training Material for theIFRS for SMEs

Module 25 Borrowing

Costs


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IFRS Foundation: Training Material

for the IFRS

for SMEsincluding the full text ofSection 25Borrowing Costs

of the International Financial Reporting Standard (IFRS)for Small and Medium-sized Entities (SMEs)

issued by the International Accounting Standards Board on 9 July 2009

with extensive explanations, self-assessment questions and case studies

IFRS Foundation

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This training material has been prepared by IFRS Foundation education staff. It has not been approved by the InternationalAccounting Standards Board (IASB). This training material is designed to assist those training others to implement andconsistently apply theIFRS for SMEs. For more information about the IFRS education initiative please visit

www.ifrs.org/Use+around+the+world/Education/Education.htm.

All rights, including copyright, in the content of this publication are owned by the IFRS Foundation.Copyright 2013 IFRS Foundation30 Cannon Street | London EC4M 6XH | United Kingdom |Telephone: +44 (0)20 7246 6410Email: [email protected] | Web:www.ifrs.org

Disclaimer: The IFRS Foundation, the authors and the publishers do not accept any responsibility for any loss caused to anyperson and/or entity that acted or refrained from acting in reliance on the material in this publication, whether such loss iscaused by negligence or otherwise. Any names of individuals, companies and/or places used in this publication are fictitiousand any resemblance to real people, entities or places is purely coincidental.

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Contents

IFRS Foundation: Training Material for theIFRS for SMEs (version 2013-1) iv

INTRODUCTION __________________________________________________________ 1

Learning objectives ________________________________________________________ 1

IFRS for SMEs ____________________________________________________________ 2Introduction to the requirements _______________________________________________ 2

REQUIREMENTS AND EXAMPLES ___________________________________________ 3

Scope of this Section _______________________________________________________ 3

Recognition ______________________________________________________________ 6

Disclosures _______________________________________________________________ 7

SIGNIFICANT ESTIMATES AND OTHER JUDGEMENTS __________________________ 8

COMPARISON WITH FULL IFRSs ____________________________________________ 9

TEST YOUR KNOWLEDGE ________________________________________________ 10

APPLY YOUR KNOWLEDGE _______________________________________________ 12Case study ______________________________________________________________ 12

Answer to case study ______________________________________________________ 13


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Module 25 Borrowing Costs

IFRS Foundation: Training Material for theIFRS for SMEs (version 2013-1) 1

This training material has been prepared by IFRS Foundation education staff and has

not been approved by the International Accounting Standards Board (IASB). The accounting

requirements applicable to small and medium-sized entities (SMEs) are set out in theInternational Financial Reporting Standard (IFRS) for SMEs, which was issued by the IASB

in July 2009.

INTRODUCTION

This module, updated in January 2013, focuses on the accounting and reporting of borrowingcosts in accordance with Section 25Borrowing Costs of theInternational Financial ReportingStandard (IFRS) for Small and Medium-sized Entities (SMEs) that was issued in July 2009 and therelated non-mandatory guidance subsequently provided by the IFRS Foundation SME

Implementation Group.. It introduces the learner to the subject, guides the learner throughthe official text, develops the learners understanding of the requirements through the use ofexamples and indicates significant judgements that are required in accounting for borrowingcosts. Furthermore, the module includes questions designed to test the learners knowledge ofthe requirements and a case study to develop the learners ability to account for borrowingcosts in accordance with theIFRS for SMEs.

|Learning objectives

Upon successful completion of this module you should know the requirements for accountingand reporting borrowing costs in accordance with theIFRS for SMEs as issued in July 2009.Furthermore, through the completion of the case study that simulates aspects of the realworld application of that knowledge, you should have enhanced your ability to account forand present financial statements in accordance with theIFRS for SMEs. In particular youshould, in the context of theIFRS for SMEs: be able

to distinguish borrowing costs from other costs

to disclose borrowing costs in financial statements

to demonstrate an understanding of the significant judgements that are required inaccounting for borrowing costs.


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IFRS for SMEs

TheIFRS for SMEs is intended to apply to the general purpose financial statements of entitiesthat do not have public accountability (see Section 1 Small and Medium-sized Entities).

TheIFRS for SMEs includes mandatory requirements and other material (non-mandatory) that ispublished with it.

The material that is not mandatory includes:

a preface, which provides a general introduction to theIFRS for SMEs and explains itspurpose, structure and authority.

implementation guidance, which includes illustrative financial statements and adisclosure checklist.

the Basis for Conclusions, which summarises the IASBs main considerations in reaching

its conclusions in theIFRS for SMEs. the dissenting opinion of an IASB member who did not agree with the publication of the

IFRS for SMEs.

In theIFRS for SMEs the Glossary is part of the mandatory requirements.

In theIFRS for SMEs there are appendices in Section 21Provisions and Contingencies,Section 22Liabilities and Equity and Section 23Revenue. Those appendices are non-mandatoryguidance.

Further, the SME Implementation Group (SMEIG), responsible for assisting the IASB on mattersrelated to the implementation of the IFRS for SMEs, published implementation guidance in

the form of questions and answers (Q&As). The Q&As are intended to provide non-mandatoryand timely guidance on specific accounting questions that are being raised with the SMEIG byusers implementing theIFRS for SMEs.

When theIFRS for SMEs was issued in July 2009, the IASB undertook to assess entitiesexperience of applying theIFRS for SMEs following the first two years of application andconsider whether there is a need for any amendments. To this end, in June 2012, the IASBissued aRequest for Information: Comprehensive Review of the IFRS for SMEs. Currently it is expectedthat an exposure draft proposing amendments to theIFRS for SMEs will be issued in the firsthalf of 2013.Introduction to the requirements

The objective of general purpose financial statements of a small or medium-sized entity is toprovide information about the financial position, financial performance and cash flows of theentity that is useful for economic decision-making by a broad range of users (eg owners whoare not involved in managing the business, potential owners, existing and potential lendersand other creditors) who are not in a position to demand reports tailored to meet theirparticular information needs.

The objective of Section 25 is to prescribe the accounting for borrowing costs. Borrowing costsare interest and other costs that an entity incurs in connection with the borrowing of funds.This section requires an entity to recognise all borrowing costs as an expense in profit or lossin the period in which they are incurred. Other sections also specify requirements for the

accounting and reporting of borrowing costs (eg Section 11Basic Financial Instruments forinterest expense calculated using the effective interest rate method and Section 20Leases forfinance charges in respect of finance leases).


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REQUIREMENTS AND EXAMPLES

The contents of Section 25Borrowing Costs of theIFRS for SMEs are set out below and shadedgrey. Terms defined in the Glossary of theIFRS for SMEs are also part of the requirements.They are in bold type the first time they appear in the text of Section 25. The notes andexamples inserted by the IFRS Foundation education staff are not shaded. The insertions madeby the staff do not form part of theIFRS for SMEs and have not been approved by the IASB.

Scope of this section25.1 This section specifies the accounting forborrowing costs. Borrowing costs are interest

and other costs that an entity incurs in connection with the borrowing of funds. Borrowing

costs include:

(a) interest expense calculated using the effective interest method as described in Section

11 Basic Financial Instruments.

(b) finance charges in respect of finance leases recognised in accordance with Section 20

Leases.

(c) exchange differences arising from foreign currency borrowings to the extent that they

are regarded as an adjustment to interest costs.

Notes

The exchange difference component of borrowing costs arising from foreign currencyborrowings to the extent that they are regarded as an adjustment to interest costs is nota major issue in theIFRS for SMEs as both borrowing costs and exchange differences arerecognised as an expense.

Examples 25.1 borrowing costs

Ex 1 An entity incurs interest at the fixed rate of 5 per cent per year on a CU100,000 (1)loan from a local bank.The 5 per cent interest on the loan is a borrowing cost.

Ex 2 An entity issued a CU100,000 debenture to a local bank. The debenture contractrequires the entity, on the sixth anniversary of the loan, to pay the local bankCU134,010 to redeem the debenture (ie CU100,000 repayment of capital andCU34,010 premium). The debenture has a coupon of zero (ie it is interest-free).

The amortisation of the redemption premium is a borrowing cost. In accordance withSection 11Basic Financial Instruments the entity accounts for the debenture at amortisedcost. Amortised cost requires accrual of the CU34,010 premium to be recognised overthe life of the debenture using the effective interest method.

(1)In this example, and in all other examples in this module, monetary amounts are denominated in currency units (CU).


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Using a spreadsheet or financial calculator, the effective interest rate on this debentureis calculated at 5 per cent (ie the present value of a single payment of CU134,010 at the

end of six years at 5 per cent is CU100,000) (Calculation: CU100,000 (1+r)^6 =CU134,010).

The premium of CU34,010 would be amortised as follows:

YearAmortisation of

premium (5% liability) Liability Premium

CU100,000 CU34,010

1 CU5,000 105,000 29,010

2 5,250 110,250 23,760

3 5,513 115,763 18,247

4 5,788 121,551 12,459

5 6,078 127,629 6,381

6 6,381 134,010 0

Ex 3 An entity incurred CU1,000 legal fees to raise a CU100,000 loan that bears interestat the fixed rate of 5 per cent per year. The principal of the loan is repayable onthe sixth anniversary of the loan.

The interest on the loan is a borrowing cost. Furthermore, the amortisation of the legalfees (ancillary cost incurred to arrange the borrowing) is a borrowing cost. Inaccordance with Section 11 the entity accounts for the loan at amortised cost.Amortised cost requires the CU1,000 transaction costs be included in the initialmeasurement of the liability and recognised over the life of the loan using the effectiveinterest method.

Ex 4 An entity entered, as lessee, into a finance lease over an item of equipment.In accordance with paragraph 20.9 at the commencement of the lease term theentity recognised a CU100,000 asset and a CU100,000 liability. The entity incurredCU5,000 costs to negotiate and arrange the lease. The entity apportioned theminimum lease payments, in accordance with paragraph 20.11, between thefinance charge and the reduction of the outstanding liability.

The finance charge is a borrowing cost.

The CU5,000 costs to negotiate and arrange the lease are an initial direct cost of thelessee. In accordance with paragraph 20.9, such costs are added to the amountrecognised as an asset. The effect of adding initial direct costs to the carrying amountof the asset (and hence increasing the carrying amount by CU5,000) will be to increase,by CU5,000, the total amount of depreciation recognised over the shorter of the leaseterm and the assets useful life.


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Ex 5 An entity incurs interest at the fixed rate of 2 per cent per year on a FCU100,000 (2)loan from a foreign bank that is repayable in full on the sixth anniversary of theloan. The functional currency of the entity is the currency unit (CU). The entityborrowed money in a foreign currency (FCU) because it believed that after takingaccount of the expected foreign exchange loss attributed to the inflationdifferential between the CU and the FCU, the effective interest rate on the FCUdenominated loan would be 4 per cent per year when equivalent local CUdenominated loans bear interest at 5 per cent per year. Changes in the CU/FCUexchange rate and the domestic inflation index proved to be consistent with theentitys predictions.

The exchange losses and the interest on the liability are borrowing costs. The sum ofthe exchange losses and the interest for the reporting period are less than what theinterest would have been on an equivalent CU denominated loan for the reportingperiod.

Ex 6 The facts are the same as in example 5. However, in this example, assume that theforeign exchange losses and interest on the FCU denominated loan exceeded theamount that interest expense would have been had the entity borrowed in itsfunctional currency (the CU).The entity accounting policy for borrowing costs on foreign currency denominatedloans limits total borrowing cost (interest and exchange differences on theprincipal) to a theoretical borrowing cost based on what the interest would havebeen on an equivalent CU denominated loan for the reporting period. The excessexchange loss, if any, is classified as a foreign exchange loss.The amount of the exchange loss that can be accounted for as a borrowing cost islimited in accordance with the entitys accounting policy that implements therequirements of paragraph 25.1(c). The limitation is such that the total borrowing cost(interest and exchange differences on the principal) does not exceed a theoreticalborrowing cost based on what the interest would have been on an equivalent CUdenominated loan for the reporting period.(3) The excess exchange loss, if any, isclassified as a foreign exchange loss.

(2)In this example, and all other examples in this module, foreign currency monetary amounts are denominated in foreign

currency units (FCU).(3) Other methods of implementing the requirements of paragraph 25.1(c) may also be acceptable.


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Recognition

25.2 An entity shall recognise all borrowing costs as an expense in profit or loss in the period in

which they are incurred.

Examples 25.2 recognition

Ex 7 On 1 January 20X1 an entity borrowed CU100,000 from a local bank. The bankcharges interest on the loan at the fixed rate of 5 per cent per year. Interest ispayable annually in arrears (ie on 31 December each year). The principal(CU100,000) is repayable in full on the sixth anniversary of the loan.

The entity must recognise CU5,000 interest (borrowing cost) as an expense in thedetermination of profit or loss for each of the years ended 31 December 20X1 to31 December 20X6.

Ex 8 On 1 July 20X1 an entity borrowed CU100,000 from a local bank. The bank chargesinterest on the loan at the fixed rate of 5 per cent per year. Interest is payableannually in arrears (ie on 30 June each year). The principal (CU100,000) isrepayable in full on the sixth anniversary of the loan. The entitys annualreporting period ends on 31 December.

The entity must recognise CU2,500 interest (borrowing cost) as an expense in the

determination of profit or loss for each of the years ended 31 December 20X1 and31 December 20X7 (ie interest accrues for the six months that the loan is in existence ineach of those years).

The entity must recognise CU5,000 interest (borrowing cost) as an expense in thedetermination of profit or loss for each of the years ended 31 December 20X2 to31 December 20X6.

Ex 9 On 1 January 20X1 an entity issued a CU100,000 debenture to a local bank.The debenture contract requires the entity pay the local bank CU110,250 toredeem the debenture on 31 December 20X2. The debenture has a coupon of zero(ie it is interest-free).

The entity must recognise CU5,000 and CU5,250 borrowing costs respectively as anexpense in the determination of profit or loss for the years ended 31 December 20X1and 31 December 20X2. The borrowing cost is the amortisation of the redemptionpremium calculated using the effective interest method (Section 11 deals with theapplication of the effective interest method) (Calculation: CU100,000 (1+r)^2 =CU110,250).

Ex 10 On 1 January 20X1 an entity incurred CU5,000 transaction costs to raise aCU100,000 loan that bears interest at the fixed rate of CU5,000 (or 5 per cent) peryear. Interest is payable yearly in arrears (ie on 31 December each year).The principal of CU100,000 is repayable in full on the second anniversary of theloan.


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The entity must recognise CU7,406(a) and CU7,594(c) borrowing costs respectively as anexpense in the determination of profit or loss for the years ended 31 December 20X1

and 31 December 20X2. The borrowing cost includes the transaction costs and theinterest calculated using the effective interest method in accordance with Section 11.

(a)CU95,000

(b) 7.796%

(e)= CU7,406 finance cost for the year ended 31 December 20X1

(b) CU100,000 loan proceeds less CU5,000 transaction costs = CU95,000 liability at 1 January 20X1

(c)CU97,406

(d) 7.796%

(e)= CU7,594 finance cost for the year ended 31 December 20X2

(d)CU95,000

(b)+ CU7,406

(a)less CU5,000 payment = CU97,406 liability at 31 December 20X1

(e) The effective interest rate is 7.796 per cent per year, which can be determined using a calculator as follows:n=2, PV=-CU95,000, FV=CU100,000, PMT=CU5,000.

Disclosures

25.3 Paragraph 5.5(b) requires disclosure of finance costs. Paragraph 11.48(b) requires

disclosure of total interest expense (using the effective interest method) for financial

liabilities that are not at fair value through profit or loss. This section does not require any

additional disclosure.


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SIGNIFICANT ESTIMATES AND OTHER JUDGEMENTS

Applying the requirements of theIFRS for SMEs to transactions and events often requiresudgement. Information about significant judgements and key sources of estimation

uncertainty are useful in assessing the financial position, performance and cash flows of anentity.

Consequently, in accordance with paragraph 8.6, an entity must disclose the judgements thatmanagement has made in the process of applying the entitys accounting policies and thathave the most significant effect on the amounts recognised in the financial statements.

Furthermore, in accordance with paragraph 8.7, an entity must disclose information about the

key assumptions concerning the future, and other key sources of estimation uncertainty at thereporting date, that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next financial year.

Other sections of theIFRS for SMEs require disclosure of information about particularudgements and estimation uncertainties.

Recognition and measurement

Borrowing costs (finance costs) are measured in accordance with other sections of the

IFRS for SMEs (eg Section 11Basic Financial Instruments and Section 20Leases). Section 25 adds no

further judgements.


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COMPARISON WITH FULL IFRSs

The following are the primary differences between the requirements as issued at 9 July 2009for accounting for borrowing costs in accordance with IAS 23Borrowing Costs and theIFRS for Small and Medium-sized Entities (see Section 25Borrowing costs).

IAS 23 requires borrowing costs directly attributable to the acquisition, construction orproduction of a qualifying asset to be capitalised as part of the cost of the asset.For cost-benefit reasons, Section 25 of theIFRS for SMEs requires such costs to be charged toexpense.

The composition of borrowing costs in full IFRSs (see paragraph 6 of IAS 23) and theIFRS for SMEs (see paragraph 25.1) are similar. However, differences between borrowing costs asdefined in IAS 23 and Section 25 may arise because the requirements for the calculation of theunderlying finance costs may be different. For example, interest expense calculated inaccordance with Section 11Basic Financial Instruments of theIFRS for SMEs might differ fromfinance cost calculated on the same instrument in accordance with full IFRSs (ieIAS 39Financial Instruments: Recognition and Measurement).


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TEST YOUR KNOWLEDGE

Test your knowledge of the requirements for accounting for borrowing costs in accordancewith theIFRS for SMEs by answering the questions below.

Once you have completed the test check your answers against those set out below this test.

Assume all amounts are material.

Mark the box next to the most correct statement.

Question 1

Borrowing costs are:

(a) interest and other costs that an entity incurs in connection with the borrowing offunds.

(b) interest expense calculated using the effective interest method as described inSection 11Basic Financial Instruments only.

(c) finance charges in respect of finance leases recognised in accordance withSection 20Leases only.

(d) none of the above.

Question 2

Borrowing costs do not include:

(a) interest incurred on bank overdrafts.

(b) incremental administrative fees incurred in connection with raising loans.

(c) finance charges in respect of finance leases recognised in accordance withSection 20Leases.

(d) dividends declared to equity holders.

Question 3

An entity must:

(a) recognise all borrowing costs as an expense in profit or loss in the period in whichthey are incurred.

(b) recognise all borrowing costs as an expense in profit or loss in the period in whichthey are incurred, except to the extent that borrowing costs that are directlyattributable to the acquisition, construction or production of an asset that necessarilytakes a substantial period of time to get ready for its intended use or sale arecapitalised as part of the cost of that asset.

(c) choose either (a) or (b) above as its accounting policy for borrowing costs and apply the

chosen policy consistently to all of its borrowing costs.


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Answers

Q1 (a) see paragraph 25.1Q2 (d) see paragraph 25.1Q3 (a) see paragraph 25.3


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APPLY YOUR KNOWLEDGE

Apply your knowledge of the requirements of accounting for borrowing costs in accordancewith theIFRS for SMEs by solving the case study below.

Once you have completed the case study check your answer against that set out at the bottomof this test.

Case study

On 1 January 20X1 SME A took out a loan of FCU150,000 from a foreign bank, which was equal

to CU300,000 on that date. TheFCU denominated loan is repayable on 31 December 20X9 andbears interest at the fixed rate of 2 per cent per year. Interest is payable yearly in arrears (ie on31 December each year) in the period the loan is outstanding. The entity borrowed in aforeign currency because it believed that after taking account of the expected foreignexchange loss attributed to the inflation differential between the CU and the FCU, the effectiveinterest rate on the FCU denominated loan would be approximately 4 per cent per year, incomparison with 5 per cent per year on a equivalent local CU denominated loan. Changes inthe CU/FCU exchange rate and the domestic inflation index proved to be consistent with theentitys predictions.

On 1 January 20X1 SME A incurred and paid CU5,000 transaction costs in borrowing

CU200,000 from Bank Z. The CU denominated fixed-rate loan bears interest at 5 per cent peryear (compounded annually). Both the principal and the accrued interest must be settled on31 December 20X5.

On 31 March 20X1 SME A issued a debenture with a face value of CU100,000 to Bank Y forCU90,000 (ie the debenture was issued at a CU10,000 discount). The debenture is interest-free.However, on 1 April 20X4, SME A must pay Bank Y CU105,000 to redeem the debenture (ie thedebenture must be redeemed at a CU5,000 premium).

On 30 June 20X1 SME A entered, as lessee, into afinance lease over an item of equipment.To recognise the rights and obligations in the lease SME A recognised a CU100,000 asset and a

CU100,000 liability. The interest rate implicit in the lease is 5 per cent per year.Lease payments are made annually in arrears.

On 31 August 20X1, SME A entered, as lessee, into an operating lease over an item of equipment.In accordance with the lease agreement SME A paid CU1,000 per month for the right to use theitem of equipment from 1 September 20X1 to 31 January 20X2.

SME As functional currency is the currency unit (CU). At 31 December 20X1 the exchange ratewas CU2.04:FCU1.

Prepare accounting entries to record the liabilities and borrowing costs in the accountingrecords of SME A for the year ended 31 December 20X1.


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Answer to case study

1 January 20X1

Dr Cash CU300,000

Cr Financial liability CU300,000

To recognise the FCU denominated long-term financial liability.

D

r

Financial liability CU5,000

Cr Cash CU5,000

To recognise transaction costs in raising the CU denominated long-term financial liability.

D

r

Cash CU200,000


To recognise the CU denominated long-term financial liability.

31 March 20X1

Dr

Cash CU90,000


To recognise the CU100,000 (debenture) long-term financial liability issued at a discount of CU10,000 (seeSection 11 Basic Financial Instruments).

30 June 20X1

D

r

Property, plant and equipment (leases equipment) CU100,000


To recognise the asset (leased equipment) and long-term financial liability arising from the finance lease.

31 December 20X1

Dr Profit or loss (borrowing costinterest and exchange loss on

accrued interest)

CU6,120(a)

Cr Cash CU6,120

To recognise settlement of interest and the foreign exchange loss on the accrued interest, on the FCU

denominated financial liability.

Dr Profit or loss (borrowing costexchange loss) CU6,000(b)



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To recognise the exchange loss on the FCU denominated long-term financial liability regarded as an

adjustment to interest costs.

Dr Profit or loss (borrowing costsinterest and transaction

costs)

CU10,789(d)


To recognise finance costs (interest and transaction costs) on the CU denominated long-term financial liability.

Dr Profit or loss (borrowing costsdiscount on issue and

premium on redemption)

CU3,559(g)


To recognise finance costs on the long-term financial liabilitydebenture.Dr Profit or loss (borrowing costsfinance cost) CU2,500

(i)

Cr Financial liability (current liability) CU2,500

To recognise finance costs on the lease liability.

The entity would also recognise the operating lease rental (which is not a borrowing cost) asfollows:

Dr Profit or loss (operating lease costs) CU4,000(j)

Cr Cash CU4,000To recognise operating lease payments (not a borrowing cost).

The calculations and explanatory notes below do not form part of the answer to this case study:a FCU150,000 2% interest 2.04 exchange rate = CU6,120 interest and foreign exchange loss

CU306,000(c)

less CU300,000 carrying amount of the FCU denominated loan at 1 January 20X1 = CU6,000exchange loss

c FCU150,000 2.04 exchange rate = CU306,000 carrying amount of the FCU150,000 loan at 31 December20X1

CU195,000e

5.533% effective interest rate = CU10,789 finance costinterest and transaction costs

e CU200,000 loan less CU5,000 transaction costs = CU195,000 carrying amount at 2 January 20X1(f)

The effective interest rate of 5.533% was computed using a financial calculator

It could also be determined as follows:

CU200,000 1.05^5 = CU255,256.3, which equals the sum of the principal and compounded interest due at

the end of 5 years

The rate that discounts the CU255,256.3 back to the initial carrying amount of CU195,000 is 5.533%, which is

determined as follows: (CU255,256.3/CU195,000)^[1/5]-1g

CU90,000 proceeds on issue 5.273% effective interest rate(h)

9/12 months (ie 1 April to 31 December) =CU3,559 finance costdiscount on issue and premium on redemption (effective interest rate)

(h) The effective interest rate of 5.273% is computed using a financial calculator or spreadsheet

CU100,000 liability 5% interest rate implicit in the lease x 6/12 months (ie 1 July to 31 December) =

CU2,500 finance cost

4 months (ie 1 September to 31 December) CU1,000 operating lease payments = CU4,000 operating leaseexpense (noteoperating lease expense is not a borrowing cost)


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Review record:

Education

staff

review

IFRS for

SMEs

staff

review

IFRS

staff

review

External

review

Audit

(x2) &

MNC

IASB

member

high level

review

Editorial

review

Introduction X X X X X X

Explain requirements X X X X X X

Significant estimates & judgements X X X X X X

Comparison with full IFRSs X X X X X X

Test your knowledge X X X X X X

Apply your knowledgecase study X X X X X X

module25__version 2013.pdf

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